Wells Fargo took its FirstEnergy [FE] rating to the equivalent of Underweight from Equal Weight, and the price target to $32.0 from $31.0, in a research note dated 2021-01-06. That figure represents around a 7.24% premium from where the company’s shares closed on Tuesday. Other analysts also revised their coverage, with BofA Securities’s analysts downgrading the shares from “a Buy” rating to “a Neutral” rating in a research note to investors issued in mid November. Meanwhile, RBC Capital Mkts had raised its rating on FE to “an Outperform” from the earlier “Sector perform”, in a research note produced for clients September 03, 2020. In addition, there was a downgrade from Scotiabank on July 22, 2020. The rater changed FE from “a Sector outperform” to “a Sector perform”.
Is FirstEnergy Corp. [NYSE:FE] a Good Buy Right Now?
It should be noted that FE technical indicators for short, intermediate as well as long term progress have placed an overall average of 8% as Sell. The average signal changed from 32% Sell in the last week and compares with 100% Sell in the past month. Data from FirstEnergy Corp.’s Trend Spotter indicated that the signals were Weakening. The stock current average is 5.19 million shares in the past 20 days and the short term average signal indicates a Hold. In the last 50 days, the average trading volume was 6.87 million shares while the medium term average advocated for Hold. The average long-term signal stands at 50% Sell and the 100-day average volume stands at 5.84 million shares.
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FE Price Performance
On Wall Street, FirstEnergy Corp. [NYSE:FE] finished Tuesday’s session up 1.12% at $29.84. The stock went up to $29.90 at the same session while its lowest single day price was $29.245. In the last five days, it saw a rise of about 0.74%, FirstEnergy Corp. shares dropped by almost -2.52% since the beginning of the year. However, the share price has dropped to as low as -43.18% below its one year high. On 01/04/21, the company shares recorded $30.66, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/05/21, the same year at $29.25. The company’s shares have declined by -37.25% in the past year. The 50-day SMA achieved is $29.59 while the 200-day SMA is $34.25. Volume dropped to 4.48 million from 5.22 million in the previous session.
FirstEnergy Corp. [FE] Valuation Measures
Notably, FirstEnergy Corp. [FE] stock cannot be classified as a good candidate in the listing of underestimated low-priced Utilities – Diversified companies to purchase soonest possible with the prevailing 12-month PE ratio of 26.45. The measure means the stock is exchanging at a premium as compared to the 16.91x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 1.46 PS value ratio is reported for the last one year of reported earnings. That is lower than the industry average of 1.50 which means FE serve an unattractive investment opportunity compared to its competitors.
FE Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 29.42 level, and in case of violation of this particular level, it will cause more drop to 29.01 level. On the upper level, 30.32 is still the key resistance. The stock may increase to the subsequent resistance at 30.08. The Relative Strength Index (RSI) pinned on the 14-day chart is 51.03, implying a neutral technical stance while the MACD stands at -0.12, meaning price will decrease in the next trading period. Percent R indicator moved to 74.40%, implying bearish price movement. Stochastic %K at 31.47% suggest selling the stock.
What is the short interest in FirstEnergy Corp.?
Short interest in the FirstEnergy Corp. stock has plunged, decreasing by -4.12 million shares to total 19.22 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 15.1 million, data from Yahoo Finance shows. The increase of 21.44% suggests the stock saw some increased bearish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 5.08% of the overall float for the stock.
FirstEnergy Corp.’s Biggest Shareholders: Who Owns FirstEnergy Corp. [FE]?
Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 61,438,399 shares or roughly 11.32% of the outstanding FE shares. This means their shares have reduced by -2,435,336 from the 61,438,399 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, SSgA Funds Management, Inc. updated stake is worth $1,032,055,412. Details in the latest 13F filings reveal that BlackRock Fund Advisors disposed off their -7.47% stake valued at $747,145,974 while Wellington Management Co. LLP added theirs at $499,927,167. During the last quarter, BlackRock Fund Advisors liquidated -2,269,740 of its shares in FirstEnergy Corp. while Wellington Management Co. LLP bought 11,813,522 shares. The Fidelity Management & Research Co’s holdings currently number 10,976,473 shares at $327537954.32. According to the firm’s last 13F report, T. Rowe Price Associates, Inc. shares in the company at filing stood at 10,592,594 shares, roughly $281,339,297.
FE Earnings Forecast For The Current Quarter
FirstEnergy Corp. [FE] is expected to report weak earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $2.88B and an earnings per share of $0.5 for Dec 2020. Looking further ahead, the company is expected to report revenue of $2.81B at an EPS of $0.71 for Mar 2021. The estimates represent upside of 3.50% and 3.23% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
FE Earnings Estimates For The Current Year
For the financial year, FirstEnergy Corp. [NYSE:FE] is expected to bring in revenue of $11.32B. The returns are nearly $280.0 million higher than the company’s actual revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 2.54, lower than that of FY19 by -$0.04. Estimates put this year’s earnings growth at -1.60%, 3.10% for the next, and at an annual -2.40% over the next 5-year period. As for sales, forecasts are for an increase of 2.60% in the current fiscal year and a further 3.50% over the following year.